Understanding Car Insurance Calculator in Minutes!
The moment you type Car Insurance Calculator, your favorite search engine, in less than a minute blurts with searches indicating Save upto 50% on your Car Insurance, Avail up to 50% on your NCB, the best car insurance in India and so on. Don’t be stranded or carried away by these promotions. A little knowledge about auto insurance calculator would help you in long run to select the best insurance for your need.
Car Insurance is must before you take out your valued possession on the road. In case of any road mishap, it would provide you cover against third-party liability and own damage coverage if you have volunteered for it. The car companies claim to provide free insurance for initial one or two years if purchasing a new car. Don’t be carried away by the freebies as you need to understand some basics of the calculator.
Factors determining the car insurance calculations:
Insured Declared Value (IDV): The value of the car depreciates every year. If your car has an accident history the value would depreciate further. When you apply for auto insurance, the insurance company would calculate the approximate value of your car at that given point of time. This estimated value is known as IDV. The premium would be dependent on the IDV. The IDV is basically required while going for a comprehensive coverage and not merely third-party coverage.
Goodwill of the Insurance Company: Before selecting the insurance provider check the past records of claims settled by the insurance provider. You can easily get the feedback via internet on the duration to settle the claims and the extent of claim settlement.
Coverage Requirement: The premium calculator is very much dependent upon the coverage requirement. If you are seeking “Own damage” coverage the premium may be a bit higher as it would provide you accidental coverage too. The mandate as per the Motor-Vehicles Act is to get third party liability cover and own damage cover is optional.
Engine size: The car insurance calculator would definitely seek the engine details as the premium is dependent on the engine size for third party insurance cover. For comprehensive coverage the engine capacity may not matter.
No Claim Bonus (NCB): As the term itself suggests, no claim bonus is the reward you seek for not claiming any amount round the year. Depending upon your insurance provider you can easily get 25% discount on the renewal premium if you are eligible for NCB. The best part is that it is the driver who earns the NCB and not the vehicle. Hence, in case you are planning to exchange your old car with a new one your calculator would consider the NCB you earned on your previous vehicle. This would help you get a discounted first premium on your new car!
Many insurance companies claim to provide the best in India. The best is the one that fulfills your requirement at a competitive premium. Decipher the genuine ones on the above discussed parameters and make the best choice!